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JSC Bank of Georgia (BGEO)

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Tuesday 13 May, 2008

JSC Bank of Georgia

Acquisition

Bank of Georgia
                  

 JSC Bank of Georgia Signs an Agreement for the Acquisition of Belarusky Nardony
                                 Bank in Belarus

JSC Bank of Georgia (LSE:BGEO) (GSE:GEB), the leading Georgian universal bank,
announced today that it has signed an agreement (the 'Agreement') to acquire a
70% equity interest in Belarusky Narodny Bank ('BNB') for a total consideration
of US$34.2 million, which translates into P/BV of approximately 1.99x, based on
BNB's 2007 Audited IFRS financial statements. According to the Agreement, Bank
of Georgia has an option to acquire the remaining 30% equity interest in BNB
over the next three years.

As of 31 December 2007, BNB had total assets of US$48.9 million and total equity
of US$24.6 million. BNB is headquartered in Minsk, has four branches and service
centers (with two more branches opening in the near future) and over 100
employees.

Selected Financial Highlights of BNB

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BNB Overview                                2006         2007
------------------------------------ ----------- ------------ ---------
US$ million unless otherwise notes            (IFRS, Audited)
------------------------------------ ----------------------------------
Assets                                     31.80        48.90     53.8%
Loans                                      13.35        20.60     54.3%
Total Deposits                             16.72        23.45     40.2%
Equity                                     14.26        24.56     72.2%
Net Income                                  0.76         1.81    138.5%
ROA                                         2.4%         3.7%
ROE                                         5.3%         7.4%
------------------------------------ ----------- ------------ ---------
*T

'This acquisition marks our entry into the Belarusian market and represents
another step towards the implementation of our international expansion strategy.
We are excited to be one of the earlier international entrants into the
promising Belarusian banking market, which in terms of assets, according to the
information published by the National Bank of Belarus, increased by 43.8% to US$
19.4 billion during 2007. The dynamic Belarusian economy, which in 2007
displayed real GDP growth of 7.8% and nominal GDP per capita of over US$4,000,
presents exciting opportunities in both corporate and retail banking sectors.
Going forward we intend to emphasise retail banking and SME coverage, building
upon BNB's solid local platform and Bank of Georgia's industry expertise. BNB
will continue to operate as a standalone bank owned and controlled by Bank of
Georgia.

We were pleased to find a strong management team at BNB who are excited at the
opportunity to continue building BNB's franchise as part of the Bank of Georgia
group. BNB's management team will be strengthened by Tariel Gvalia, one of the
veterans of Georgian banking industry, former Vice Chairman of Bank of Georgia
and Chairman of the of TbilUniversalBank, acquired by Bank of Georgia in 2004.
Mr. Gvalia will relocate to Minsk in May 2008 and spearhead the initial phases
of the integration. Additional management support will be provided by our
colleagues based in Georgia and Ukraine.

I would like to thank all my colleagues for their hard work over the past
several months to make this transaction happen. We were very pleased with the
constructive approach and efficiency of Belarus authorities and look forward to
building a good working relationship with our new regulator in Belarus.

With this transaction our international acquisition objectives for 2008 are
achieved and we will now focus our management resources on the integration of
our subsidiaries in Belarus and Ukraine into Bank of Georgia group', commented
Nicholas Enukidze, Chairman of the Board.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 35% market share by total assets (all data according to the NBG as
of 31 December 2007). The major component of the Galt & Taggart Index, the bank
has 131 branches and over 770,000 retail and more than 120,000 corporate current
accounts. The bank offers a full range of retail banking, corporate and
investment banking and asset & wealth management services. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary Aldagi BCI.

Bank of Georgia has, as of the date hereof, the following credit ratings:

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Standard & Poor's 'B+/B'                         Stable
Moody's           'B3/NP' (FC) & 'Ba1/NP' (LC)   Stable
Fitch Ratings     'B/B'                          Stable
*T

For further information, please visit www.bog.ge/ir or contact:

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Nicholas Enukidze                   Irakli Gilauri               Macca Ekizashvili
Chairman of the Supervisory Board   Chief Executive Officer      Head of Investor
                                                                  Relations
+995 32 444 105                     +995 32 444 102              +995 32 444 256
nenukidze@bog.ge                    igilauri@bog.ge              ir@bog.ge
*T

This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities. Certain statements in this news report are forward-looking
statements and, as such, are based on the management's current expectations and
are subject to uncertainty and changes in circumstances.